The primary story, both nationally and in local submarkets, is a dwindling months’ supply of inventory. The cure, of course, is more inventory. But new construction has been lagging during this opportune moment, and sellers of existing homes are not yet hitting the market in droves. The heart of the selling season has yet to begin, so we’re still optimistically watching for an increase in activity in the coming months.
New Listings in the state of Utah were down 6.4 percent to 5,117. Pending Sales increased 4.0 percent to 4,148. Inventory shrank 28.1 percent to 12,442 units.
Prices moved higher as Median Sales Price was up 7.0 percent to $230,000. Days on Market decreased 16.9 percent to 64. Months Supply of Inventory was down 36.2 percent to 3.0 months, indicating that demand increased relative to supply.
National housing starts were up by 10.8 percent at the end of 2015 when compared to 2014, and the unemployment rate is holding low and steady at or near 4.9 percent. Meanwhile, mortgage rates continue to astound below 4.0 percent and we have witnessed an unprecedented 70 consecutive months of private-sector job growth. As consumers navigate their options, competition for the best available properties should be profound, especially if the market remains hobbled by a lack of supply.
Additional reports, including a Monthly Indicators and Housing Supply Report, may be found on the Utah Association of REALTORS® website, or by clicking HERE.